Ibrahim purchased a house in 2019 and rented it out the entire time he owned it. His adjusted basis in the property before depreciation is $274,500 ($41,500 attributable to land). In 2021, Ibrahim sold the property for $320,000 with $7,500 in deductible expenses. The total depreciation claimable was $17,093. What is Ibrahim's taxable gain on the disposition of the building? $14,087 $49,405 $55,773 $96,593 Aurora and Jennifer are married and file jointly. On June 1, 2019, they bought a duplex together. They lived on one side and rented the other half the entire time they owned the duplex. The total purchase price was $225,000 with $22,500 of that being the land value. The units are the exact same size. In June 2021, they sold the entire duplex for $280,000 ($28,000 for the land) and moved to a new town for Jennifer's work. Their allowable depreciation on the rental was $13,039. There were total deductible expenses of $2,000 on the sale. What is their taxable gain on the duplex? $31,113 $31,213 $45,213 $62,427
Ibrahim purchased a house in 2019 and rented it out the entire time he owned it. His adjusted basis in the property before depreciation is $274,500 ($41,500 attributable to land). In 2021, Ibrahim sold the property for $320,000 with $7,500 in deductible expenses. The total depreciation claimable was $17,093. What is Ibrahim's taxable gain on the disposition of the building? $14,087 $49,405 $55,773 $96,593 Aurora and Jennifer are married and file jointly. On June 1, 2019, they bought a duplex together. They lived on one side and rented the other half the entire time they owned the duplex. The total purchase price was $225,000 with $22,500 of that being the land value. The units are the exact same size. In June 2021, they sold the entire duplex for $280,000 ($28,000 for the land) and moved to a new town for Jennifer's work. Their allowable depreciation on the rental was $13,039. There were total deductible expenses of $2,000 on the sale. What is their taxable gain on the duplex? $31,113 $31,213 $45,213 $62,427
Chapter3: Income Sources
Section: Chapter Questions
Problem 86P
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Kk301.
Transcribed Image Text:Ibrahim purchased a house in 2019 and rented
it out the entire time he owned it. His adjusted
basis in the property before depreciation is
$274,500 ($41,500 attributable to land). In 2021,
Ibrahim sold the property for $320,000 with
$7,500 in deductible expenses. The total
depreciation claimable was $17,093.
What is Ibrahim's taxable gain on the
disposition of the building?
$14,087
$49,405
$55,773
$96,593
Aurora and Jennifer are married and file jointly.
On June 1, 2019, they bought a duplex
together. They lived on one side and rented the
other half the entire time they owned the
duplex. The total purchase price was $225,000
with $22,500 of that being the land value. The
units are the exact same size.
In June 2021, they sold the entire duplex for
$280,000 ($28,000 for the land) and moved to
a new town for Jennifer's work. Their allowable
depreciation on the rental was $13,039. There
were total deductible expenses of $2,000 on
the sale.
What is their taxable gain on the duplex?
$31,113
$31,213
$45,213
$62,427
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